Financial planning tools and services to put you on the path to the future you want
Your guide to financial planning and retirement
Connect with peers and experts
Get to know the people behind the company and the mission behind the work
Offer financial wellness to the people at the heart of your business
May 12, 2015
When it comes to choosing a place to retire, a lot of people nearing retirement age gravitate towards Arizona, Florida, and the Carolinas. Natural choices, granted, but perhaps it’s time to think outside the box just a little and consider the Lone Star State. That’s right, the second largest and second most populous state in the U.S. — Texas. Following are a handful of reasons why you might want to consider Texas as a retirement destination.
Welcome to Texas.
Low Cost of Living
Whether you’re working full-time or you’re retired, living costs money. While select big cities in Texas can be expensive — Dallas and Houston, for example — most of the state is a bargain, especially in relation to the rest of the country. Last year, Kiplinger identified San Antonio, San Marcos, and McAllen as three of the ten least expensive cities to live in the United States. Meanwhile, cities like Tyler and Sherman have earned rave reviews for their “livability.”
No State Personal Income Tax
Texas is one of just seven states that refrains from taxing personal income, interest income, and dividend income (with the others being Alaska, Florida, Nevada, South Dakota, Washington and Wyoming). Granted, these states sometimes look to other assessments to make up for the shortfall, often in the form of higher sales taxes. But the state sales tax in Texas is a mere 6.25 percent (with food, prescription drugs, and non-prescription drugs exempt), and local additions are limited to 2 percent, so the sales tax maxes out at 8.25 percent. Furthermore, there’s no inheritance or estate tax.
San Antonio is one of the least expensive cities in the U.S.
Retirees often prefer a warm climate. For one thing, it means little to no snow shoveling! Many parts of Texas have suitably mild winter weather, especially along the beaches of the Gulf coast. But Texas’ diverse geography offers landscapes (and climates) to suit every taste, from the piney woods of East Texas to the rolling plains of the Panhandle to the Old West vibe of points west and the magnificent Hill Country in the heart of the state.
Sports, History, and Culture
There’s no shortage of things of things to do in Texas, which is home to two NFL teams, two MLB teams, three NBA franchises, two MLS clubs, and the NHL’s Dallas Stars, not to mention upwards of a dozen colleges and universities with major Division I sports programs. Other prime attractions include: world class shopping and music, 13 national parks, 93 state parks and natural areas, the state fair, and a long list of museums and historical destinations — a list headlined, of course, by the Alamo. And then there are diversions that are quintessentially Texas, like the rodeo, eating Texas barbeque, and attending Friday night high school football games.
The Alamo, in San Antonio, Texas.
If you need help narrowing down your options within the state, consider reviewing the helpful list of ‘GO TEXAN’ Certified Retirement Communities, which is administered by the Texas Department of Agriculture and currently numbers 49 cities and counties. According to the Department’s website, “the GO TEXAN stamp of approval ensures each certified community has demonstrated through its application that it can meet the living, employment/volunteer, health, entertainment, education and safety needs of its citizens and visitors — all the things that make Texas a great place to retire.”
Obviously, choosing a retirement location is a serious decision, one that shouldn’t be taken lightly. Investigate Texas and all that the Lone Star State has to offer you.
Where is the Best Place for You to Retire?
Whether you retire to Texas or some place else, it is critically important that you understand your retirement finances — now and into the future. The NewRetirement Retirement Calculator lets you see:
Do it yourself retirement planning: easy, comprehensive, reliable
Take financial wellness into your own hands and do it yourself retirement planning: easy,
Share this post:
Our weekly newsletter full of inspiration, podcasts, trends and news.
© 2023 NewRetirement, Inc. All rights reserved.
Disclaimer: The content, calculators, and tools on NewRetirement.com are for informational and educational purposes
only and are not investment advice. They apply financial concepts in a general manner and include
hypotheticals based on information you provide. For retirement planning, you should consider other
assets, income, and investments such as equity in a home or savings accounts in addition to your
retirement savings in an IRA or qualified plan such as a 401(k). Among other things, NewRetirement
provides you with a way to estimate your future retirement income needs and assess the impact of
different scenarios on retirement income. NewRetirement Planner and PlannerPlus are tools that
individuals can use on their own behalf to help think through their future plans, but should not be
acted upon as a complete financial plan. We strongly recommend that you seek the advice of a financial
services professional who has a fiduciary relationship with you before making any type of investment or
significant financial decision. NewRetirement strives to keep its information and tools accurate and up
to date. The information presented is based on objective analysis, but it may not be the same that you
find on a particular financial institution, service provider or specific product's site. All content,
tools, financial products, calculations, estimates, forecasts, comparison shopping products and services
are presented without warranty.